The challenges for BRICS in a changing world order
Relevant to GS Paper 2 (International Relations) - discusses BRICS organization, India's role in multilateral forums, and global geopolitical dynamics.
UPSC Relevance
This article is relevant for UPSC GS Paper II (International Relations) and GS Paper III (Economy), covering topics like global governance, multilateral groupings, and India's foreign policy.
What You Need to Know
BRICS is a grouping of major emerging economies—Brazil, Russia, India, China, and South Africa—formed to promote cooperation and global economic governance. In 2024, it expanded to include new members like Iran, Egypt, and Ethiopia, representing about 45% of the world's population and 25% of global GDP.
Why It Matters for UPSC
BRICS provides a platform for India to balance Western dominance in global institutions and promote South-South cooperation. Its expansion and internal dynamics affect India's strategic autonomy and economic diplomacy, crucial for shaping a multipolar world order.
Background
BRIC was coined in 2001 by Jim O'Neill; the first summit was in 2009. South Africa joined in 2010, making it BRICS. Key initiatives include the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA). India hosted the 2012 and 2016 summits, and the 2021 summit under India's chairship focused on reform of multilateral institutions.
Current Relevance
The 2024 BRICS summit in Kazan, Russia, discussed expansion and global economic challenges, with India emphasizing its commitment. India's participation balances its ties with the West and the Global South, especially amid geopolitical tensions like the Ukraine war and China's assertiveness.
Key Points for Revision
- •BRICS expanded in 2024 to include Iran, Egypt, Ethiopia, and others, increasing its share to 45% of global population and 25% of GDP.
- •India has invested in BRICS institutions like the New Development Bank (NDB), with authorized capital of $100 billion, to fund infrastructure projects.
- •The 2021 New Delhi Summit under India's chairship emphasized reform of multilateral institutions and counter-terrorism cooperation.
- •BRICS faces faultlines over expansion and geopolitics, with members adopting pragmatic approaches on trade, investment, and currency cooperation.
- •India's strategic interest lies in using BRICS to promote South-South cooperation and a multipolar world order while maintaining autonomy.
Prelims Practice MCQs
Q1. Consider the following statements regarding BRICS: 1. The New Development Bank (NDB) was established by BRICS in 2014. 2. BRICS expanded its membership in 2024 to include Iran, Egypt, and Ethiopia. 3. The 2021 BRICS Summit was hosted by India. Which of the statements given above are correct?
All statements are accurate: NDB was founded in 2014, BRICS expanded in 2024, and India hosted the 2021 summit. Hence, option (d) is correct.
Q2. With reference to the BRICS grouping, which of the following statements is/are correct? 1. BRICS accounts for more than 40% of the world's population. 2. The Contingent Reserve Arrangement (CRA) is a financial safety net for BRICS countries. 3. India is the largest contributor to the New Development Bank's capital. Select the correct answer using the code given below:
Statements 1 and 2 are correct; BRICS has over 40% of world population and CRA is a financial safety net. Statement 3 is wrong as China contributes the most to NDB. Hence, (b).
Q3. The term 'BRICS' was coined by which economist?
Jim O'Neill, then at Goldman Sachs, coined the acronym 'BRIC' in 2001, which later became BRICS with South Africa's inclusion. Hence, (b).
Mains Practice Questions
Discuss the challenges and opportunities for BRICS in the changing world order. How can India leverage its membership in BRICS to advance its strategic interests? (250 words)
DiscussAnalyse the significance of the 2024 BRICS expansion for global governance and India's role in shaping the grouping's agenda. (150 words)
Analyse